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So did the stock price break any technical rules today by going up 30%? Should I wait for the stock to reach $3.90 for it's technical breakout before I buy more???
Why buy now at $1.30 when I can wait after the 2004 audit release and pay 3 times as much!
Technicals smecticals.
Better yet, EPS of $1.38. We'll see $15.00 + in a year from now when we're on the AMEX awaiting the 2005 audited financials.
hapless, who do you think was buying on Thursday and Friday?!! LOL!
Better yet, EPS of $1.38. We'll see $15.00 + in a year from now when we're on the AMEX awaiting the 2005 audited financials.
technical smectical. LOL.
That's great news. Demand for Veltex manufactured apparel must be exceeding supply causing the wholesale segment to step up to find sources. Thanks for the update.
invest, let me run this scenario by you that may explain all three of your old PRs. Also, I apoligize for my child-like insults.
If Veltex technically wasn't a wholly-owned in 2003, the following PRs would make sense:
1. $5 million dollar revenue miss (assumes that a third party owns approx 20% - 25% of Veltex Mill, and,
2. The need to issue additional shares for 100% ownership by Veltex of Velvet Mill.
3. Perhaps Invest is, or in part, correct as to the reason Velvet Mills didn't roll-up in 2003 as a consolidating sub.
I see how 1., 2, and 3. are consistent now. BUT, that was 2003. In 2005, Matin is stating that Velvet is a 100% owned subsidiary. Remember that unexplained share increase last Fall? It all fits, IMO.
I want to thank invest1980 for continuing his effort of raising the tough issues to bring clarity to Veltex despite my immaturity. I think I finally understand what's transpired.
wholly owned defined...
http://www.ventureline.com/glossary_W.asp
WHOLLY OWNED SUBSIDIARY is an entity whose parent owns virtually 100% of its common stock.
invest, show some education.
invest, let me teach you something else... The Market (i.e stock market) looks forward and not backwards. In other words, I think 2003 has zero impact on future price appreciation. I think if you thought enough about it, you'd conclude the same.
Second, on March 23, 2005, Javeed Matin CEO, issued Notes to "his" financial statements stating that Velvet Textile Mills is a wholly-owned subsidiary.
If Matin wants to commit fraud, he'll have to pay the consequences. I don't think he's that ignorant.
If so, start acting like it. You don't have to be a CPA to understand SFAS 94. Do the research.
SFAS 94
http://www.nysscpa.org/cpajournal/old/07551314.htm
Exceptions to consolidation
1. Nonhomogeneous operation of parent and subsidiary;
2. Significant minority interest; and,
3. A foreign subsidiary under severe exchange limitations.
Now, apply one of these three exceptions to Veltex for 2003. It's 3. because of the tax holiday limitation. The auditors would have reported the minority ownership percentage if such existed.
Folks, please do some research prior to making stupid comments. Remember, we're trying to improve the exchange of ideas here; not dumb them down.
invest, you're making up crap again. Read the financials. It states "due to a lack of absolute control of the affairs of the subsidiary". It uses the term affairs not management. Please refer you a dictionary. Financial affairs are hampered by the government to meet the tax holiday requirement.
Invest, did you read the above paragraph??? The US auditors stated that Veltex ACQUIRED Velvet Textile Mill.
Pesonally, I can't wait to move to the AMEX to rid ourselve of so many uneducated posters.
invest, why don't you educate yourself and read the accounting pronouncement. It is true that Bangladesh provides a generous tax incentive to reinvest profits in that country. I believe this is the restriction on the money. However, I also understand that this benefit only exists for 7 years, so I believe the restriction has expired this year or will perhaps expire next. In other words, I don't believe this non-consolidation requirement will continue into the future.
Imakemoney, I don't agree with your analysis. I think the assumption that Velvet Mill only supplies KCA may be inaccurate. Also, it's incorrect that all of KCA's sales are sold through these new venues. I believe that Veltex is having to purchase some apparel from outside of their vertical operation. In other words, I think the combined sales could be much higher than the $50 million they're currently forecasting. I say this because that estimate has been around for a while. I think now they feel very confident because of the recent success.
Keep in mind that some smaller Bangladesh mills and apparel makers are likely vulnerable to wholesalers like Veltex since they haven't the connections to sell directly to retailers or customers. Just my opinion.
It could be Veltex's distributors. If your company began to buy amounts which were significant to one of your suppliers, wouldn't you follow and consider buying you supplier's stock? I would.
For example, it was the engineers I knew who worked in the Silicon Valley that made a ton of money in Nasdaq ride to 5000. They had insight and were connected with the hottest new technologies.
It's not what you know, it's who you know. It applies in the market as well.
invest, where is the claim that Veltex is a wholesaler for the textile mill? The mill only produces fabric, not finished garments.
In 2003 Veltex never claimed to be a rapidly growing wholesaler based on my recollection. The big push was trucking, which flopped, due to good reasons from what I understand.
It was after the trucking fiasco is when Matin retrenched in apparel. The actual chronology of events makes sense and is legit.
Let's keep in mind the following:
1. Matin did come through with a top notch auditor (who has a history of auditing publicly traded companies), just as he said he would some time ago.
2. Everyone knocks the Banladesh auditors, yet aren't they the ones who lopped off nearly $5 million in revenues for 2003??? Get real folks, if this was a scam audit, the audited numbers would have matched what was being reported in the PRs the last 18 months.
3. With respect to the $5 million. There's two scenarios that come to my mind which could explain this as a mistake:
a) Part of it was treated as 2002 revenues and part 2004 revenues by this auditor, or
b) These revenues related to KCA and Matin was counting them in the 2003 numbers even though legal ownership hadn't passed yet. The latter is more plausible IMO.
4. The US audit states that Velvet Mill was "acquired" by Veltex in 1999. They obviously did the research on ownership or relied on the Bangladesh firm's. In either account, they're on the hook for this representation.
5. Let's face it, this company is recovering from the trucking fiasco. The stock price would probably be $15 - $20 (with many fewer shares) by now if it weren't for this major mistake in 03'. This mistake doesn't make Veltex a scam.
6. Time will tell. Matin clearly needs to find a financing source or a way of transferring profits from Bangladesh. If he's able, this stock will recover nicely, and soon IMO.
By being off a single digit, it allows him to always come back and say, "oh, my mistake. I misread the 3 as a 2".
At least now we know who's been selling at 75 cents. Looking to get back in cheaper?
It appears to me from the application of SFAS 94 and the constant share issuances, that Veltex can't fund US operations through overseas profits; hence the reason for continuous share sales.
O'k, what's the new share count? I admit that I can't trust share count from the company representatives.
SFAS 94
http://www.nysscpa.org/cpajournal/old/07551314.htm
The question is... after the tax advantages cease in 2005, is the mill no longer under extreme governmental limitation so that it can be consolidated.
G&W, not sure what you're asking because the ownership of the mill has been made very clear in the footnote. excerpt:
"wholly owned" means 100% for accounting purposes.
March 23, 2005
The accompanying audited financial statements have been consolidated in order to assist the reader in gaining an understanding of the totality of the operations of Veltex Corporation and its wholly-owned subsidiary Velvet Textile Mills, Ltd.
The financial statements of Veltex Corporation as of December 31, 2003 were audited by the accounting firm of Chisholm, Bierwolf & Nilson, LLC in accordance with accounting principles generally accepted in the United States of America. Chisholm, Bierwolf & Nilson provided an audit report, dated February 10, 2005.
The financial statements of Velvet Textile Mills, Ltd. as of December 31, 2003 were audited by M. N. Islam & Company, who provided an audit report.
These consolidated financial statements have been prepared to show the combined financial position and results of operations of the two above-mentioned entities. In the opinion of management, they include all of the adjustments which are necessary for a fair presentation. Any inter-company activities have been eliminated in the consolidation. The consolidated financial statements have not, in the aggregate, been audited. However, each of the entities’ financial statements was audited individually. These consolidated financial statements are presented for clarification and discussion purposes only and should not be read without reading the separate financial statements and the attached auditor reports.
Wait until mice (textileguru from RB) starts posting child molestation allegations. This guy is truly mentally sick. What I don't understand, is how I was jailed yet our administrator permits this crap.
Mice will mislead you. He won't tell you the truth that it's the apparel traders and those small factories relying on such to sell their products are the ones that are hurting. It's not vertically integrated companies (no middlemen traders) with access to new markets like Veltex.
http://www.bharattextile.com/newsitems/1994283
Expected billion dollar investment over the next couple of years. Can't be a bad place to manufacture textiles.
http://www.bharattextile.com/newsitems/1993676
Bangladesh garment exports surge 38% in February.
http://www.bharattextile.com/newsitems/1994113
I've just answered my question -- Doesn't KCA Garments sell to large chain retailers? If so, isn't this Gidget's in to the chain stores???
Matin may just be brilliant.
I don't believe 1 response qualifies as a statistical sample; however, I do see that the website is displaying the 2004 lineup, so clearly this was a purchased trademark.
These small independent stores will purchase whatever they can sell IMO. The real money will be made if we can penetrate the large chain retailers. I'm very pleased to learn that Gidget already has a market presence which will greatly assist in further market penetration. The key now is to develop a line of clothing that kids want to purchase. If they can pull it off, we're looking at a huge winner.
rob, please share with us the stores you contacted. I want to call them too. Your statements don't make complete sense to me since the listed stores are independent and can order whenever and whatever they want. Also, I'm having a hard time believing that a store employee would first have that information to share much less share it with a complete stranger over the telephone. Thanks.
Does anyone live near one of the Gidget dealers? I was in Pismo Beach Ca just a few days ago on vacation but I didn't know about these dealers or I would have inspected the merchandise.
ALABAMA
ADRENALINE
328 FAIRHOPE AVE., FAIRHOPE, AL 36532
251-990-6768
CALIFORNIA
BBK'S BEACHWEST
175 POMEROY AVE. #E, PISMO BEACH, CA 93449
805-773-3225
RAW SKIN
2796 CARLSBAD BLVD., CARLSBAD, CA 92008
760-434-1122
TRENDS
401 CENTER STREET, TAFT, CA 93268
661-623-1510
TAHO SPORTS LTD
4008 LAKE TAHOE BLVD., LAKE TAHOE, CA
TULIPS
6165 EL CAJON BLVD., SAN DIEGO, CA 92115
619-583-6165
BEACH HOUSE
10 STATE STREET, SANTA BARBARA, CA. 93101
805-966-128
H.B. WAHINE
301 MAIN ST. HUNTINGTON BEACH, CA 92648
714-596-2696
HOBIE SURF
24825 DEL PRADO, DANA POINT, CA
949-496-2366
HOBIE SURF
294 FOREST DRIVE, LAGUNA BEACH, CA
949-497-3304
HODAD'S SURF SHAK
20031 VALLEY BLVD., TEHACHAPI, CA 93561
661-822-0113
PACIFIC BEACH SURF
4150 MISSION BLVD. STE. #161, SAN DIEGO, CA 92109
858-373-1138
PACIFIC COAST SSS
1375 GRAND AVE., ARROYO GRANDE, CA 93420
805-473-9338
PLANET BLUE
3900 CROSS CREEK RD. #8 MALIBU, CA 90265
310-317-9975
SHUZ
1043 GARNET AVE., PACIFIC BEACH, CA 92109
858-483-2825
SOUTH COAST SURF
740 FELSPAR SUITE #A, SAN DIEGO, CA 92109
858-483-7660
CANYON LAKE
31682 RAILROAD CANYON RD #5, CANYON LAKE, CA 92587
909-244-2855
CENTRAL COAST
736 HIGUERA ST., SAN LUIS OBISPO, CA. 9340
DIANES SWIMWEAR
116 MAIN STREET, HUNTINGTON BEACH, CA 92648
714-536-7803
DIANES SWIMWEAR
300 PCH, HUNTINGTON BEACH. CA 92648
714-536-1101
DIANES SWIMWEAR
920 AVOCADO AVENUE, NEWPORT BEACH, CA 92660
949-759-6880
EXPOSURE
127 N. MARYLAND, GLENDALE CA 91207
818-244-5960
ENCINITAS SURFBOARDS
107 N. HWY 101, ENCINITAS, CA 92024
760-753-0506
OCEAN SNOW
1016 W. VALLEY PARKWAY, ESCONDIDO, CA
760-747-7873
PROGESSION SURF
828 N. COAST HWY 101, LEUCADIA, CA 92044
760-942-2088
OCEAN GIRL
2162 AVENIDA DE LA PLAYA, LA JOLLA, CA 92037
NO FEAR
2251 FARADAY AVE., CARLSBAD, CA 92008
760-603-8643
SCHMIDTS BOARDHOUSE
310 S. TWIN OAKS VALLEY RD., SAN MARCOS, CA 92078
760-891-0003
FLORIDA
BOARD HOUSE
21 ALAFAYA WOODS BLVD., OVIEDO, FL. 32765
407-366-9597
WEST COAST SURF SHOP
3902 GULF DRIVE., HOLMES BEACH, FL 32147
941-778-1001
Z WAVE SURF SHOP
FLAGLER BEACH FL
386-439-9283
JUNO SURF SHOP
13205 US HIGHWAY 1, JUNO BEACH, FL 33408
561-626-3569
ISLAND WATER SPORTS
3291 NE INDIAN RIVER DRIVE, JENSEN BEACH, FL 34957
772-334-1999
GROUND SWELL SURF
811 DONALD ROSS RD., JUNO BEACH, FL 33408
561-622-7878
CORE SURF & SKATE
5895 ST. AUGUSTINE RD. #2 ,JACKSONVILLE, FL 32207
904-737-5978
ISLAND SHOP
435 GULF BLVD., INDIAN ROCKS, FL 33785
727-596-2244
MANDALAY SURF SHOP
499 MANDALAY AVE., CLEARWATER BEACH, FL 33767
727-443-3884
THE PIT
18 A STREET ST., AUGUSTINE BEACH, FL
904-471-4700
V TOWN
101 WEST VENICE AVE., VENICE, FL 34285
941-488-3896
SURF SHAK
8021 THOMAS DRIVE, PANAMA CITY BEACH, FL 32408
850-236-8000
KANSAS
CR CALVERT COMPANY
202-208 N. PENN AVE, INDEPENDENCE, KANSAS 67301
620-331-0360
NORTH CAROLINA
WHALEBONE JUNCTION
2214 S. CROATAN HWY., NAGS HEAD, NC 27959
252-441-6747
WHALEBONE SURF SHOP
799 SUNSET BLVD., COROLLA, NC 27927
252-453-2667
SECRET SPOT
2815 S. CROATAN HWY., NAGS HEAD, NC 27959
252-441-4030
NEW HAMPSHIRE
CINNAMON RAINBOW 931 OCEAN BLVD. HAMPTON, NH 03842 603-929-7467
NEW JERSEY
SHIPS WHEEL II STORE
7806 LONG BEACH BLVD., HARVEY CEDARS, NJ 08008
609-494-3826
SUNSATION BEACH
1001 MAIN STREET, BELMAR, NJ
732-280-8700
NEW YORK
TIN PAN TOGS
57 KING ST., CHAPPAQUA, NY 10514
914-238-5018
PENNSYLVANIA
KAYTON COMPANY
1045 GRAPE STREET, WHITEHALL, PA 18052
610-288-1045
SOUTH CAROLINA
SURF CITY SOUTH
3001 #4 N. KINGS HWY., MYRTLE BEACH, SC 29577
843-449-7207
TENNESSEE
LAKE OCOEE INN
2496 HIGHWAY 64, EAST BENTON TN 37307
423-338-5591
TEXAS
ISLAND STYLE/ON THE
2105 PADRE BLVD., SOUTH PADRE ISLAND, TX 78597
956-761-1194
VIRGINIA
CORNER 24
500 LASKIN ROAD, VIRGINIA BEACH, VA 23451
757-496-5238
WASHINGTON
SESSIONS SKATEBOARDS
16317 N.E. 234TH STREET, BATTLE GROUND, WA
360-666-3272
PUERTO RICO
WEST COAST SURF SHOP
MUNOZ RIVERA 2E RINCON, PR. 00677
LA SELVA SURF SHOP
CALLE FERNANDEZ GARCIA 250, LUQUILLO, PUERTO RICO 00773
VIRGIN ISLANDS
LATITUDE 180
TORTOLLA, US VIRGIN ISLANDS
LOVE CITY SURF SHACK
P.O. BOX 37 ST. JOHNS VIRGIN ISLANDS 00831-0037
CANADA
CASUAL CORNER
625 GODERICH STREET, POR ELGIN, ONTARIO NOH2CO
519-389-5130
hapslap, if what you say is true, the auditors would have inserted a "Going Concern Disclosure" which points out to readers that the company may have problems financially in the future. Now, did you read that in the audit opinion?
Get a clue.
I think it's obvious that some of the claimed 2003 revenue shifted into 2004 since the latest revenues are higher than first reported.
The remaining few million... Is it possible that this is from KCA? I can't recall when KCA was announced as being acquired. I believe it was early 2004.
I believe you are incorrect. The cash flow should EXCLUDE the trucking activities IMO since it was discontinued. By not having this stock for cash listed, it must be attributable to the trucking.
invest1980, is correct and I believe that the $4 million income tax reserve might come due if cash were transfered out of the country instead of reinvested in the company (hence the purchase of KCA Garments). There's a couple of ways at looking at this. I look at the $4 million dollar reserve as an accounting entry and not as a REAL liability. What's nice is that the overseas income is computed with a tax component even though it'll unlikely ever come due. I believe my analysis is correct, but don't rely on it.
I believe the income tax reserve has been grown as follows:
Income tax Expense (Income statement) XXX
-----Income tax Reserve (Balance Sheet) XXX
However, what invest1980 doesn't understand is that in 2003 there was no way of "transporting" the cash out of the company as there were minimal external sales. Remember, if the apparel item costs $2.00 to produce, and Veltex US Apparel pays $2.05 for it, there's only a 5 cent profit to Bangladesh ( 2% profit). If VLXC US sells it for $3.00, it has a $0.95 profit. In other words, once the US business ramps up, cash can be transferred easily between companies. Also remember that Veltex has the ability to buy outside of it's vertical integration to meet sales.
Please note that all of the above is simply my opinion. I do not hold myself out to be an expert in international finance/Veltex.
Debt to equity exchange might explain the increase in share count a few months ago. It also demonstrates a great deal of confidence in the company's future performance.
1. Note to accompanying audited consolidated financials states that Veltex Textile Mill is a "wholly owned subsidiary". Wholly owned means 100%.
2. There is no "Going Concern Disclaimer" made by the US auditor. 2004/2005 must be good years.
3. NOL will shelter future earnings.
rawnut is so concerned about the share count rising. What he should be doing is researching to learn WHO'S BUYING?!!! LOL! You'll learn over time.
Here's my post I'm sharing with the board in 4 months. Bashers, please save as favorite.
Next week - 2003 audit release
April - 2004 audit release
September -- AMEX listing
December $10.00 share (as funds CONTINUE to load up)
The King
Here's my post I'm sharing with the board in 4 months. Bashers, please save as favorite.
Next week - 2003 audit release
April - 2004 audit release
September -- AMEX listing
December $10.00 share (as funds CONTINUE to load up)
The King
Perhaps the biggest loser on this board of all... Why do I say this??? Don't you have anything better to do than to review 000's of worthless IHUB posts, and for the purpose to discredit a poster ??? LOL!!! Absolutely pathetic. I actually feel sorry for you now. Your life must be miserable.